Jinjiang Hotels Secondary Listing on HKEX: Over 14,000 hotels in operation, fundraising will be used for digital transformation, strategic investments, or acquisitions.

Recently, Shanghai Jinjiang International Hotels Co., Ltd. (Jinjiang Hotels, 600754.SH) filed a listing application for the second time with the Hong Kong Stock Exchange’s Main Board. Oriental Securities International is the sole sponsor. If Jinjiang Hotels succeeds in listing in H shares, Jinjiang Hotels will become the first hotel group in China to achieve an “A+H” listing.

Jinjiang Hotels has been listed on the Shanghai Stock Exchange’s B-share market since 1994, becoming the first hotel group to be publicly listed on China’s stock exchanges. In 1996, Jinjiang Hotels began trading on the Shanghai Stock Exchange.

As of December 31, 2025, Jinjiang Hotels has 14,132 hotels already in operation, with 1,368,057 rooms. There are 10 hotel brands with more than 500 hotels already in operation, including Hilton Garden Inn, Vienna International, Vienna Hotels, LIFENG, Zhefei (喆啡), Xi’An (希岸), Jinjiang Star, Days Inn (7 Days), Magnolia (白玉兰), and 7 Days Premium (7天优品), etc.

Revenue and net profit have continued to decline over the past three years

Currently, Jinjiang Hotels operates hotels through two business models: the owner-occupied and leased model, and the franchise management model. Among the franchise and management hotels already in operation, the proportion of room count is 94.9%, and the average annual compound growth rate between 2023 and 2025 is 8.4%. In 2023, 2024, and 2025, the revenue from franchise and managed hotels already in operation accounted for 42.4%, 44%, and 49.7% of total revenue, respectively.

Based on Jinjiang Hotels’ financial data from the most recent three years, both revenue and net profit recorded continued declines. Specifically, Jinjiang Hotels’ revenue in 2023, 2024, and 2025 was approximately RMB 14.649 billion, RMB 14.063 billion, and RMB 13.811 billion, respectively; net profit was approximately RMB 1.277 billion, RMB 1.144 billion, and RMB 0.989 billion, respectively. However, Jinjiang Hotels’ attributable net profit in 2025 increased by 1.58% year over year. Its attributable net profit in 2023, 2024, and 2025 was RMB 1.002 billion, RMB 0.911 billion, and RMB 0.925 billion, respectively.

In its prospectus, Jinjiang Hotels stated that over the past three fiscal years, the continuous decline in revenue was mainly due to the company’s strategic closure of some owner-occupied and leased hotels to align with the company’s “asset-light” strategy, as well as the challenging overseas market environment. Over the past three fiscal years, the continuous decline in net profit was mainly attributable to reduced non-recurring income from asset disposals and the resulting revenue decline affected by current market conditions.

The data shows that Jinjiang Hotels’ net profit margins in 2023, 2024, and 2025 were 8.7%, 8.1%, and 7.2%, respectively.

As disclosed in the prospectus, from 2023 to 2025, Jinjiang Hotels’ three key indicators in China’s lodging industry also declined year after year. The data shows that Jinjiang Hotels’ RevPAR (revenue per available room) in China in 2023, 2024, and 2025 was RMB 169.1, RMB 159.2, and RMB 154.4, respectively; ADR (average daily rate) was RMB 255.6, RMB 244.3, and RMB 239.0, respectively; and occupancy rates were 66.1%, 65.2%, and 64.6%, respectively.

It is worth noting that in its prospectus, Jinjiang Hotels stated that the financial performance of its overseas business during the track record period did not meet expectations, and it recorded net losses during the track record period. Specifically, the group recorded comprehensive net losses from overseas business of approximately RMB 405 million, RMB 4.34 yuan, and RMB 663 million in 2023, 2024, and 2025, respectively.

Jinjiang Hotels said this was mainly due to rising operating costs, especially labor and energy costs; higher interest rates leading to increased credit-related expenditures; and intensifying market competition.

The fund-raising amount will be used for digital transformation, repaying credit facilities, strategic investments or acquisitions, etc.

According to the prospectus, Jinjiang Hotels said the fund-raising amount will be used for, including: spending each year from 2026 to 2030 on overall digital transformation, repaying credit facility amounts, and making strategic investments or acquisitions of high-quality asset-light targets in the hotel management industry that align with the company’s strategic development plan, as well as working capital use for its own operations and general corporate purposes.

Jinjiang Hotels said the company is developing an integrated digital hotel management platform to cover the full operational lifecycle, including a digital hotel engineering system, energy management, and centralized operational management, thereby improving real-time monitoring, resource utilization efficiency, and operational transparency.

In terms of hotel expansion, Jinjiang Hotels said that its strategy in Europe, the Middle East, and Africa focuses on value-added portfolio optimization and mergers and acquisitions to enhance scale, profitability, and long-term competitiveness. At the same time, the company plans to renovate more than 150 of its own and leased hotels located in countries across France, Poland, the Netherlands, Germany, and other regions in Europe, the Middle East, and Africa, and also implement brand standardization within its own and leased portfolio. In addition, the company plans to invest in or acquire high-quality asset-light hotel management targets, aiming to acquire equity or controlling interests in target companies that have mature portfolios, strong brands, and proven operating capabilities in established European markets.

Jinjiang Hotels also said it is prioritizing its presence in Indonesia, Malaysia, and Vietnam, and expects that the annual compound growth rate of hotel room supply in those regions from 2025 to 2030 will be 6.6%, 1.7%, and 5.5%, respectively. “As the chain penetration rate is still below 20%, there is room for development for mid-scale and economy brands. Benefiting from the continued growth of outbound travel from China, it is expected that in 2026 the region will attract about 120 million international tourist arrivals, generating more than USD 350 billion in tourism revenue, accounting for 8.5% of the region’s GDP.” Jinjiang Hotels said.

Jinjiang Hotels also said it is committed to strengthening its brand portfolio and advancing the implementation of the “12+3+1” brand strategy. According to the prospectus, “12+3+1” includes 12 core brands, of which 5 mature brands currently have a scale of more than 1,000 hotels; 3 brands have more than 500 stores and may expand hotels to more than 1,000; and the other 4 brands currently have hotel scale below 500, but have clear positioning and differentiated growth potential. These 12 core brands include: Jinjiang Star (锦江之星), Days Inn (7天), Magnolia (白玉兰), Vienna Hotel (维也纳酒店), Vienna International (维也纳国际), LIFENG (丽枫), Lily (丽怡), Keliya De (凯里亚德), Comfort (康铂), Zhefei (喆啡), Xixian (希岸), and IU.

Second, this framework focuses on accelerating the development of three mid-to-upscale brands: Jinjiang Metropolo (锦江都城), LIRUI, and LIBAI.

Third, Jinjiang Hotels said it hopes to create a dedicated distribution segment for resort business, which can take advantage of the rising momentum in leisure and tourism and enable Jinjiang Hotels’ product portfolio to break beyond the scope of urban destinations, thereby diversifying offerings. “With the resources of our controlling shareholder, Jinjiang Group—especially its tourism business resources—our goal is to quickly build a differentiated resort product, and establish a strong competitive moat within the resort business segment.” Jinjiang Hotels said.

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